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260k mortgage on 65k salary doable or silly?
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GAH
All the bills you say would be included in the 750 except the holiday bit which we will do using the leftover.
If you only spend £750 a month on all food and bills for a family of 3 then you are doing amazingly well. Does that include the increase in council tax for a bigger house and do you have a car?0 -
kingstreet wrote: »
It's do-able. I'd recommend caution though.
So what type of caution? Keep back 6 months bills/living money? Anything else?0 -
If you only spend £750 a month on all food and bills for a family of 3 then you are doing amazingly well. Does that include the increase in council tax for a bigger house and do you have a car?
Council Tax - 160 (Although good point - will increase to 185)
Gas and ELEC - 100
Insurances - 60
Sky/phone/broadband -80
Water - 30
TV Licence - 15
Food - 300
The car is taken care of in the 180 per month travel.0 -
I was looking at rates and the Yorkshire's 3.39% five year fix looks good. Tried the affordability calculator and only got £195k to £225k maximum borrowing.
Caution? Look at things from every angle and ask yourself all the what ifs?
- job loss
- relationship breakdown
all the really pleasant stuff that can go wrong.
The emergency fund you mention is a good example...
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
i would suggest you do a budget SOA for your private use because it reveals all sorts of forgotten overheads!--you dont have to publish it for dissection!mfw'11 No68- 55k mortgage İO--little to nothing saved! i must do better.0
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kingstreet wrote: »I was looking at rates and the Yorkshire's 3.39% five year fix looks good. Tried the affordability calculator and only got £195k to £225k maximum borrowing.
Caution? Look at things from every angle and ask yourself all the what ifs?
- job loss
- relationship breakdown
all the really pleasant stuff that can go wrong.
The emergency fund you mention is a good example...
I suppose job loss but my main thinking is that is there much difference having to cover a 1250 mortgage than a 1500 mortgage if you really cant find a job - if it's over 6 months then you'd have to rethink in either situation.
- relationship breakdown
No way :-) Although again if it did then we'd have to split everything anyway and I'd be living on beans to take care of them!0 -
i would suggest you do a budget SOA for your private use because it reveals all sorts of forgotten overheads!--you dont have to publish it for dissection!
I did it and there's not much to add really.
It sounds boring but we don't spend a lot - Sky and my mobile are the main luxuries. I work long hours and so never go out during week and weekends are spent visiting friends/parks etc.
My God when you write it down we do sound boring!! May be we aren't doing enough activities!0 -
It sounds like it ought to be doable, but how many lenders are prepared to offer £260K on a £65K salary? I would have thought very few, and maybe at a higher rate of interest and fees than if you were borrowing a lower multiple.0
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4x salary is very rare but may be accepted by some if you have A1 credit and your income is coming from employed income and is salary only (bonuses and commission are treated differently).
Speak to an IFA.0 -
I'd be cautious about taking on such a big mortgage. I personally would feel more comfortable with a more manageable debt and more disposable income. Good luck, whatever you decide.0
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